The geographical heart of Southeast Asia, the Kingdom of Thailand is more than a pulsating, vibrant tourist destination – it is one of the biggest economies in the region. Heavily export-oriented, Thailand, or the Land of Smiles as it is popularly known, is recognized for the openness of its economy, and willingness to accept foreign direct investment. The recent agitation by Red Shirt was also successfully thwarted.
Thailand today is the world’s largest rice exporter, the second-largest tungsten producer and third-largest tin producer. Having made significant progress in social and economic development in recent years. The current growth rate is around 8% p.a. Unlike its other neighbours in Southeast Asia such as Laos, Vietnam, or Burma, Thailand was never colonized – and the country’s developing, free-enterprise economy is slowly shifting from agriculture to manufacturing.
Thailand, known as Siam until 1939, has been inhabited for around 5,000 years with the earliest civilization believed to be that of the Mons in central Siam, although the first Siam state is the Theravada Buddhist kingdom of Sukohthai.
The land of Theravada Buddhism has had a long tradition of being one of Asia’s most culturally vibrant countries. With miles of extended coastline, Thailand has some of the world’s best beaches, ancient architecture, friendly people and unique cuisine.
The Thai traditional greeting, the wai, involves pressing the fingers and palms together at chest level while slightly bowing the head. The wai is always returned, and performs the twin functions of greeting and showing respect.
My previous posting was mainly focussed on our site visits to various interesting places of tourists destination. Please do visit.. http://mastpradeep.blogspot.com/2010/09/thailand-trip.html.
This trip was meant to be a business trip. Therefore, we were more interested to know about the retail business in Thailand and Bangkok in particular. A team of 20 Real Estate Managers of Reliance visited Bangkok from 3rd March, 2011 to 6th March, 2011. The extensive tour of retail market was undertaken and atleast 20 big properties consisting of super market, departmental stores, speciality stores and hyper mart were studied and tried to find out the reasons for success of retail business in Bangkok. A few questions were framed in mind and tried to find out the answers.
Why Hyper as a format has been successful in Thailand:
i) Meet local aspiration
ii) Both spouse are working : Easy to shop at one go.
iii) Strategically located
iv) USP : Fresh is actually fresh both Vegetarian and non-Vegetarian
v) Ready to cook and ready to serve
vi) Price points : competitive and affordable
vii) Quality assurance
viii) Quick Service
ix) Food court and impulse buy on GF : Major driver
x) Robust logistics
Normally, the stores are located on wide roads, best competitive places, good demographic profile, futuristic development etc.
Government has been extremely helpful and approval process is not so cumbersome.
Now a days Government has become a little cautious due to traffic problems and is encouraging new stores on highways.
The continous research is integral part of their business. Therefore, they have been able to meet the challenge of competition.
Currently the size of organised retail in India is hardly 5%. With economy growing at a rate of 9%, there is very good future for retail industry in India. There will be tremedous surge in employment in this sector.
We had wonderful experience moving around with all team members. Lot of learning in terms of team building, sacrificing, cost saving, new development came into being.
Let us hope for better India tomorrow.
